Which combination of the following statements is true about the risks that a swap dealer confronts:
(i) - interest rate risk
(ii) - basis risk
(iii) - exchange rate risk
(iv) - political risk
(v) - sovereign risk
A) (i) , (ii) , (iii) , and (v)
B) (i) , (iii) , and (iv)
C) (iii) , (iv) , and (iv)
D) (i) , (ii) , (iii) , (iv) , and (v)
Correct Answer:
Verified
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A)
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